Albanese, Burnham Risk 20 Years of Stagnation as Inflation Erodes Real Wages

1 articles · Updated · The Australian Financial Review · Jul 24

Anthony Albanese and new British Prime Minister Andy Burnham are portrayed as relying on a 1970s-style economic playbook just as inflation is cutting into workers’ real pay.
Real-wage pressure on both sides of the globe is the central challenge, yet the report argues both centre-left leaders are underestimating how severe and prolonged the economic strain could become.
That policy similarity between Canberra and London raises the risk that each government responds with outdated tools rather than a strategy suited to current inflation dynamics.
The broader warning is that without a break from that approach, Australia and Britain could slide into a prolonged period of weak growth and stagnation lasting up to 20 years.